Sustainability Material Issues and Implementation Structure

Sustainability Material Issues

The Sapporo Group evaluates "the degree of impact of our business on society and the environment" and the degree of impact of society and the environment on our finances in terms of risks and opportunities designating nine Sustainability Material Issues that the Group considers particularly important and will focus on in its business activities. In response to changes in the social and business environment surrounding the Group, we periodically review these material issues, and some have been updated for 2025.
Among these, we have positioned "realization of a decarbonized society," "realization of a society in harmony with nature," "mutual prosperity with local communities," "promoting responsible drinking," and "active participation of diverse human resources" as issues of particular importance in our management.

Risks and Opportunities by Material Issues

Classification	Most Important Issues	Material Issues	Impact of Our Business on Society and the Environment		Social/Environmental Impact on Corporate Finances
Classification	Most Important Issues	Material Issues	Risk	Opportunity	Risk	Opportunity
Harmony with the Environment	●	1. Realization of a decarbonized society	Large	Large	Large	Medium
		2. Realization of a recycling-based society	Large	Medium	Large	Medium
	●	3. Realization of a society in harmony with nature	Large	Medium	Large	Medium
Co-prosperity with Society	●	4. Mutual prosperity with local communities	Medium	Large	Medium	Large
		5. Providing health value	Small	Large	Small	Large
	●	6. Promoting Responsible Drinking	Large	Large	Large	Large
Success of Human Resources	●	7. Active participation of diverse human resources	Small	Medium	Large	Large
8. Building a sustainable supply chain			Large	Small	Large	Small
9. Promoting Safe Products and Facilities			Large	Medium	Large	Medium

Sustainability Material Issues Targets and Indicators

* Target setting company notation　SH: Sapporo Holdings, SB: Sapporo Breweries, PS: POKKA SAPPORO Food & Beverage, SRE: SAPPORO REAL ESTATE, SLN: Sapporo Lion, SBL: Sleeman, SAS: Sapporo Stone Brewing, SVL: Sapporo Vietnam, YSM: Yasuma, FBS: Foremost Blue Seal, PK: Pokka, SSI: Shinsyu-ichi Miso

Classification	Most Important Issues	Material Issues	Specific Initiatives	Indicators	Targets Setting Companies	Target Year	Targets	SDGs
Harmony with the Environment	●	Realization of a decarbonized society	Reducing greenhouse gas emissions at company sites and supply chains	Greenhouse Gas Emission Reductions Certified by Science Based Targets Initiative (SBTi)	Sapporo Group	2030	Scope 1,2 Reduce greenhouse gas emissions by 42% compared to 2022	7.2 13.1 17.17
	●	Realization of a decarbonized society			Sapporo Group (SB, SBL, PS)	2030	Scope 3 Reduce greenhouse gas emissions by 25% compared to 2022 FLAG Scope 1,3: Reduce greenhouse gas emissions by 31% compared to 2022	7.2 13.1 17.17
		Realization of a recycling-based society	Realization of containers and packaging compatible with a recycling-oriented society Reduction and recycling of plastic resources	Usage rate of recycled materials in PET bottle products	PS	2030	Sales of PET products in Japan: Recycled material usage rate 50%	12.3 12.4 12.5 14.1
				Reduction of plastic used in advertisement products	SB	2030	Single-use plastic advertising products derived from fossil fuels: abolished in principal in Japan
			Reduction of waste and food loss	Implementation rate of food recycling etc.	SLN		Implementation rate of standards set by the Food Recycling Act (+1% per year) 50% achieved by fiscal year 2023
			Reduction of waste and food loss	Waste recycling rates at production sites	SB, PS		Waste recycling rate of 100% at production sites in Japan
			Conservation of Water Resources	Water usage per unit of production	SVL	2030	At Long An Factory, which is located in a high-risk water area: Reduce water usage per unit of production in 2030 by 10% compared to 2023 levels Properly communicate with local communities about water risks, such as floods, and strive to minimize their impact	6.4
			Conservation of Water Resources	Water risk management	SB, SBL, SAS, SVL, PS, PK, YSM		Survey of water risks at all production bases, etc. once/within 3 years Efficient use of water	6.4
	●	Realization of a society in harmony with nature	Mitigation Measures for Climate Change and Measures to Reduce Impacts on Nature	Nitrogen fertilizer input per unit of barley/malt, optimization of fertilization communication.	SB	2030	Achieve 100% implementation of communication efforts to track nitrogen fertilizer application per unit of barley/malt and optimize fertilization practices. Achieve 100% implementation by 2030. Sharing our FLAG Scope 1 and 3 targets and conducting on-site visits to collect information on the use of nitrogen-based chemical fertilizers and organic fertilizers	13.1 15.4
	●	Realization of a society in harmony with nature	Crop cultivation that responds to climate change, Facility/community development that coexists with nature	Progress in developing ingredients to respond to climate change	SB	2030	Application for registration of domestic varieties of barley and hops with characteristics that can respond to climate change	13.1 15.4
Co-prosperity with Society	●	Mutual prosperity with local communities	Improvement of regional value Resolution of local issues using company resources	Progress of our "regional revitalization business"	SB		In order to create sustainable regions in cooperation with local governments, we will conduct matching between local food suppliers and companies at food business meetings Satisfaction rate of local governments, suppliers, and buyers at business meetings is 75.0% or higher.	4.7 8.9 11.3 11.7 17.17
				Progress in building an environment for lemon production in Japan	PS		◆Long-term Inherit the rich land and blessings of lemon cultivation in Japan for the future generations and the local community. ◆Short-term Increase the minimum unit of farmland by at least 2,000m² every year Expand cultivated land in cooperation with partners, not only by ourselves Taking over farmland without a successor, regenerating abandoned farmland, and other initiatives
				Number of regional learning programs (food education, on-site classes, factory tours, etc.) related to the food and beverage business	PS	2030	Ten times as many as FY2021 (400 cases)
		Providing health value	Provision of health value through business	"Pokka Lemon" brand summary [Annual purchase rate (%)・Annual purchase quantity (number per buyer)]	PS	2030	Contribute to people's well-being by expanding the total demand for lemons by disseminating the health functions of lemons and proposing uses and occasions.	2.1 3.4 11.3
				Development status of products that contribute to customer health	PK	2030	Reduce added sugar to within 4.5% for products sold in Singapore and Malaysia (limited to POKKA products).
				Status of acquisition of certifications for properties that contribute to the provision of health value	SRE		Acquisition of certification for owned properties that contribute to the provision of health value
	●	Promoting Responsible Drinking	Awareness-raising of responsible drinking	Progress in the labeling of pure alcohol content	SB	2025	100% display of pure alcohol content (g) per bottle on canned alcoholic beverages and lightly alcoholic beverage containers produced and sold in Japan	3.5
				Percentage of employees participating in awareness-raising activities related to responsible drinking through e-learning, etc.	SB, SLN		Education through e-learning, etc. for all domestic employees (more than once a year) 100% participation
				Strengthen initiatives for non-alcoholic, low-alcoholic, and reduced-alcohol products	SB	2026	To meet the diverse needs of customers, we aim to expand the range of options in non-alcoholic, low-alcohol, and reduced-alcohol products.
					SLN
				Satisfaction with responsible drinking seminars	SB	2027	By providing customers with information on responsible drinking and promoting awareness activities, we aim to prevent harmful alcohol consumption and contribute to society. Achieve a satisfaction rating of 4 or higher (on a 5-point scale) in post-seminar surveys by 2027.
				Number of incidents of accidental ingestion of alcohol at restaurants	SLN		0 cases
				Display rate of messages to prevent drinking under the age of 20 on restaurant menus and at the POP	SLN		100%
Success of Human Resources	●	Active participation of diverse human resources	Promotion of Diversity, Equity & Inclusion (DE&I)	Development status of systems and environments that match diverse values and new work styles	SH, SB, PS, SRE, SLN	2026	Work engagement^(*) 54 or higher Index based on stress checks and employee awareness surveys	5.5 8.5
					SBL		Percentage of employees who received DE&I training: 100% Percentage of employment leaders who have attended conscious inclusion training: 100%
					SVL		DE&I comprehension: 6.0 points^() Number of local employees in management: 2 Organizational Culture Survey 6.00 points^() Indicators from the "Organizational Culture Survey" by SVL (out of 7 points).
					PK		engagement^(*) 80% Indicators based on "Employee Survey" conducted by PK (76% benchmark)
				Progress status of promotion of women's empowerment	SH, SB, PS, SRE, SLN	2026	At least 12% female executives and at least 12% female managers
					SH	2030	At least 30% female executives
					SH, SB, PS, SRE, SLN	2030	At least 20% female managers
			Investing in human capital for growth and productivity	Progress in fostering a challenging culture for future value creation	SH, SB, PS, SRE, SLN	2026	Integrated survey "Challenges for future value creation"^(*) 3.0 or higher Sapporo Group's own survey index based on stress checks and employee awareness surveys <1.0 to 4.0 digitized>.
				Progress status of human resource development through active investment (management human resources/global core human resources/DX/IT core human resources)	SH, SB, PS, SRE, SLN	2026	Sufficient personnel to provide successor candidates for management positions 100 persons of global core human resources 200 persons of DX/IT core human resources
				Degree of improvement in productivity due to improved mental and physical health	SH, SB, PS, SRE, SLN	2026	Presenteeism loss rate^(*) 33.4% or less An index based on stress checks and employee awareness surveys, the average of SH and the four operating companies
Building a sustainable supply chain			Respect for Human Rights in the Supply Chain Reduction of environmental impact in the supply chain Stable procurement	Compliance rate with the Sustainable Procurement Guidelines	SB, SBL, SAS, SVL, PS, PK, YSM, FBS, SLN		Implementation of measures to promote and disseminate the Basic Procurement Policy and Sustainable Procurement Guidelines	10.2 15.3 17.17
				Compliance rate with the Sustainable Procurement Guidelines	SB, PS		100% compliance rate with the Sustainable Procurement Guidelines of major suppliers
				Status of verification of supply chain construction that prevents deforestation	Sapporo Group		Establishment and implementation of a scheme (2) to verify that there is no deforestation in the procurement of high-risk items (1). (1) Beef, palm oil, soy, cocoa, wood, and wood fibers (2) Explanation of our company's policy to suppliers, verification of the existence and implementation of the policy through surveys, etc., and corrective actions as needed.
				Progress of human rights DD process	SB, SBL, SAS, SVL, PS, PK, YSM, FBS, SLN		Establishment and implementation of a scheme^(*) that can confirm respect for human rights in the supply chain (Priority implementation from major raw materials and high-risk raw materials) (1) Compilation of a list of the supply chain for each raw material (2) Confirmation of daily activities through questionnaires, etc. (3) Investigation of the situation, etc. as necessary (4) Confirmation of corrective actions as necessary
				Progress of human rights DD process	SB, PS	2025	Confirmation that human rights are respected when procuring major raw materials and high-risk raw materials
Promoting Safe Products and Facilities			Food safety	Operation and continuous improvement of the food safety assurance system Number of serious food accidents	SB, SBL, SAS, SVL, PS, PK, FBS, SLN		Reflect the voices of customers and other stakeholders (including inside the company) in the food safety assurance system. Reduction of the occurrence of serious food accidents	2.1

* Counts for more than 2/3 of the relevant emissions of the entire Sapporo Group

Sapporo Group Environmental Vision 2050

Sustainability Material Issues: Click here for the latest list of Progress and Achievements (118KB)

This indicates the progress toward material issues, indicators, and targets under operation until 2025.

Process for Identifying Material Issues

Step 1: List the issues

Comprehensive list of sustainability issues based on international frameworks such as GRI standards, SASB, and ESG rating assessment items
Extract items from the list of issues that are particularly relevant to the Sapporo Group business type and format

Step 2: Prioritize issues

Based on the issues identified, score the degree of impact of the business on society and the environment and the degree of impact of society and the environment on our finances from the aspect of risk and opportunity for each business
Prioritization at Sapporo Holdings and major operating companies based on relevance to vision and management strategy

Step 3: Advice from external experts

Dialogues with external experts from both the investor and multi-stakeholder perspectives were held to obtain objective advice on priority issues

External experts who participated in the dialogues

Mr. Minoru Matsubara, Executive Officer and General Manager of Responsible Investment Division, Resona Asset Management Co., Ltd.
Ms. Makiko Akabane, CSR Asia Japan Representative

In addition to the assessment that we have captured important issues in the Group business, we have received the following perspectives.

Linkage between business strategy and sustainability material issues
- Implications of each issue for business development using natural capital
- Financial implications in terms of both risks and opportunities
The importance of clearly stating the Group specific efforts to address each issue
- Value of raw materials, regional initiatives, etc.
- Disclosure of specific strategies for human capital

Step 4: Approval of priority issues

Approval of the final identified material issues by the Management Council and the Board of Directors

Sustainability Implementation Structure

Sapporo Group has established a Group Sustainability Committee, chaired by the President and representative director of the Company, as an organization that formulates an overall policy for the promotion of the Group sustainability activities and ensures cooperation and coordination within the Group.

The Corporate Planning Department of Sapporo Group develops and implements various measures to promote sustainability activities in each Group company, and works with sustainability personnel at operating companies to share information and confirm progress.

Group Sustainability Committee

Meetings are basically held twice a year
Main topics of discussion
- Monitoring of the performance against the sustainability material issues
- Review of strategies and policies for each issue
Discussions, resolutions, reports, etc. at the Management Council and Board of Directors meetings according to the agenda